2 bd · 2.0 ba ·
1,078 sqft ·
Built 1999
· Condo
· Active
· 420 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$2,178/mo
Mortgage (P&I)
−$1,363
Tax + insurance
−$433
HOA
−$578
Vac / Maint / Mgmt
−$457
Net cashflow
$-653/mo
Annual
$-7,840/yr
Cap rate
3.28%
Cash-on-cash
-10.77%
DSCR
0.52
1% rule
0.84%
Cash to close
$72,772
Investor read
This is a 2-bed/2.0-bath condo listed at $260k.
At list price, monthly cash flow is $-653 ($-8k/yr) — negative.
To cash-flow at today's rent, offer at most $144k (44.4% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $218k (16.2% below list).
It's been on market 420 days — a 12% lower offer ($229k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $144k (44.4% below list) — sets the bar for cash-flow.
In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (10.0% local appreciation)).
Location reads 82/100 on livability (#75 in FL, #1,255 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, health & safety A+; Watch: employment C-, crime F.
Palm Beach (suburban): math 46% / reading 53% proficiency, ranked #34 of 73 in FL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Watch-outs: HOA is 27% of rent.
Market conditions: Rents flat; 574 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 3,974 units permitted in Palm Beach County in 2024 (1,012 in 5+ unit buildings).
Palm Beach County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
5 sale attempts since 17y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
Current owner paid $135k; list at $260k implies a 93% gain — meaningful room to come down on a strong offer.
By year 2, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Questions for listing agent
What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
It's been on market 420 days. Have you received any prior offers? Is the seller open to a 44% concession, seller financing, or rate buy-down credit?
What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
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